Suarez, who is currently serving a 10-match ban for biting Chelsea defender Branislav Ivanovic, is set to return to the Reds line-up for the League Cup third round tie against Manchester United on September 25.

Sturridge has been in fine form for Brendan Rodgers’ side this season, scoring five goals in the club’s opening four matches, but many believe the England striker’s position will come under threat from the returning Uruguayan.

But McAllister, who won the UEFA Cup with the Merseyside club in 2001, insists there is space for both players.

“Suarez is a sensational player,” he told talkSPORT. “Love him or hate him, you can’t argue with the fact he’s a fantastic footballer.

“When you’ve got players like that you find a way to fit him in to the team. Sturridge and Suarez are best played through the middle but Suarez is more adaptable, he could play either side. Suarez is clever enough to play in and around Sturridge.

“Liverpool have started the season really well. Daniel Sturridge has been on fire. He’s a player that I have always admired. I just hope he can continue it.

"He’s a player who, if he can show those sort of performances over the course of the season, then he can be as good as anyone. Then you can start mentioning him in the top 10 or 20 players in the world. He’s that good.”